Stocks Fall Modestly As Boeing and AlliedSignal Interupt Encouraging String of Profit
Oct. 22, 1997
Stocks Fall Modestly As Boeing and AlliedSignal Interupt Encouraging String of Profit Reports; Dow Industrials Fall 25.79 to 8,034.65
The Dow Jones industrial average fell about 25 points to 8,035 after nearly erasing an earlier 66-point deficit. The Dow had risen a combined 213 points on Monday and Tuesday, quickly recovering last week's heavy losses.
Most broad-market measures also paused in this week's rebound, which was triggered by strong third-quarter reports from IBM, Microsoft, Citicorp, Chase Manhattan and AT&T.
Today, 3M and United Technologies stepped forward with better-than-expected results for the July-September period, but AlliedSignal failed to meet forecasts by a small margin and Boeing warned that it will post an unexpected loss for the quarter.
Boeing, which also said its earnings will be hurt next year because of problems keeping up with its booming orders for airplanes, was the Dow's biggest decliner, followed by AlliedSignal.
3M, United Technologies and DuPont, which rose despite reporting slightly disappointing results, helped cushion the Dow's fall.
Overseas, Tokyo's Nikkei stock average rose 2.8 percent, Frankfurt's DAX index rose 0.8 percent and London's FT-SE 100 fell 1.5 percent.
According to preliminary calculations, the Dow Jones industrial average fell 25.79 to 8,034.65.
Declining issues outnumbered advancers by a 4-to-3 margin on the New York Stock Exchange, with 1,228 up, 1,649 down and 543 unchanged.
NYSE volume totaled 612.24 million shares as of 4 p.m., vs. 581.79 million in the previous session.
The Standard & Poor's 500-stock list fell 3.79 to 968.49, the NYSE composite index fell 1.39 to 508.80, and the Nasdaq composite index fell 4.56 to 1,707.98.
The Russell 2000 index of smaller companies fell 0.69 to 458.24, but the small-company dominated American Stock Exchange composite index rose 1.38 to 713.74.